Approve the acquisition of land to gain full access to the City's radio tower \n \n on McKee Road which will allow for full marketability of the cell tower for \n \n lease agreements.
Approval
Pending
Background
The City's radio tower, located off of McKee Road is currently accessible only
by an easement. The City has been intrested and actively pursuing purchase of
this property for several years. Recently the City was contacted by Columbus
Bank and Trust and offered to sell a portion of property that would give the
City ownership access to the tower for maintenance. This will allow the City to
market the tower for additional cellular lease agreements. Similar cellular
lease agreements that the City is currently administering average $10,000 per
year in revenue. The City will acquire the property for $10,000. The
appraisal shows a value of between $9,600 and $16,000. Rental income from the
tower will return the City's investment within approximately one year.
Analysis
This acquisition is needed to gain ownership access to the City's radio tower
for maintenance and market the tower for additional revenue..
Financial Considerations
The funding source for the purchase will be General Fund CIP, Property
Acquisiton.
Projected Annual Fiscal Impact Statement
Potential enhancement of cellular lease agreement revenues of approximately
$10,000 per year.
Legal Considerations
Council must approve all property acquisitions.
Recommendations/ Actions
Approve the acquisition of land to gain full access to the City's radio tower